Akron, OH - January 2, 2013 - The estate tax law has been resolved, at least for now, with the last minute resolution of the “American Taxpayer Relief Act of 2012”.
The major provisions are:
1) The unified credit that applies to both the Estate and Gift tax will be $5.12 million per person instead of the $1 million that would have occurred in 2013 had the fiscal cliff not been resolved.
2) The maximum estate and gift tax rate will be 40%. The 2012 rate was 35%.
3) It appears that all other provisions of the 2012 law will remain. The Generation Skipping Tax (GST) credit will remain at $5.12 million. Portability also remains, allows surviving spouses to use the exemption amount left by the deceased spouse. So, after the first spouse dies, upon the death of the surviving spouse he/she will be able to pass on $10.24 million tax free, assuming none was previously used.
4) As of January 1, 2013 the Ohio Estate Tax is no longer in effect for individuals dying in 2013.
Now that we appear to have certainty on this issue, now is the time to review your estate plan. For more information, please call your Stark & Knoll Lawyer at 330-376-3300 or Phil Kaufmann, Chair of the Estate Planning and Probate Group.